Reverse Mortgage Refinancein Utah — HECM Refinance
Eliminate your monthly mortgage payment by converting your current loan into a reverse mortgage — or refinance an existing HECM to access more of your home's equity. Available to Utah homeowners age 62 and older.
What is a reverse mortgage refinance?
A reverse mortgage (HECM) lets Utah homeowners 62 and older turn home equity into cash, a line of credit or monthly payments and pay off an existing mortgage, with no required monthly mortgage payment. Borrowers must live in the home, keep up taxes, insurance and upkeep, and complete HUD-approved counseling.
Reviewed by Kenny Farshchian, NMLS #1639863Updated
What Is a Reverse Mortgage Refinance?
A reverse mortgage refinance replaces your current home loan with a Home Equity Conversion Mortgage (HECM) — an FHA-insured reverse mortgage available to homeowners age 62 and older. There are two common paths, depending on where you're starting from.
Traditional Mortgage → Reverse Mortgage
Replace your existing forward mortgage — conventional, FHA, or VA — with a HECM. This eliminates your required monthly principal-and-interest payment entirely, as long as you're 62 or older and have enough equity to qualify.
HECM-to-HECM Refinance
Refinance an existing reverse mortgage into a new one — often to take advantage of increased home value, access more available funds, or add a spouse who wasn't originally on the loan.
You must be 62 or older to qualify. If you're not yet eligible, a conventional cash-out refinance or home equity line of credit (HELOC) may better fit your needs in the meantime.
Key Benefits
Eliminate Your Monthly Payment
Converting a traditional mortgage into a reverse mortgage removes the required monthly principal-and-interest payment, freeing up income in retirement.
Access More of Your Equity
If your home has appreciated since your original loan, a HECM-to-HECM refinance may unlock additional available funds based on your home's current value.
FHA-Insured & Non-Recourse
Like all HECMs, a reverse mortgage refinance is FHA-insured and non-recourse — you or your heirs will never owe more than the home is worth when the loan becomes due.
Add a Spouse to the Loan
If your spouse wasn't old enough to be a borrower on your original HECM, or wasn't yet your spouse, a refinance can add them as a co-borrower for added protection.
Who Qualifies
Reverse Mortgage Refinance Pros & Cons
- Eliminates a required monthly mortgage payment
- Frees up cash flow without selling your home
- Non-recourse — you'll never owe more than the home's value
- Can access additional funds if home value has increased
- Stay in the home you already know and love
- Loan balance grows over time as interest and fees accrue
- Requires enough home equity to pay off the existing mortgage
- Closing costs apply, similar to any mortgage refinance
- Reduces the equity available to leave to heirs
- Not available for second homes or investment properties
Frequently Asked Questions
Yes, if you're 62 or older and have enough equity in your home. The reverse mortgage pays off your existing mortgage balance at closing, and going forward you have no required monthly principal-and-interest payment — though you remain responsible for taxes, insurance, and upkeep.
It's when an existing reverse mortgage borrower refinances into a new HECM — often because their home's value has increased, interest rates have changed favorably, or they want to add a spouse to the loan who wasn't originally included.
You need enough equity for the new reverse mortgage to pay off your existing mortgage balance in full at closing. The exact amount depends on your age, home value, and current interest rates — we'll calculate this for your specific situation.
Yes. Just like a HECM for Purchase, HUD requires independent counseling with a HUD-approved counselor before you can refinance into or within a reverse mortgage. This ensures you fully understand the program before committing.
It can reduce the home equity available to heirs over time, since the loan balance grows as interest accrues. However, because HECMs are non-recourse loans, your heirs will never owe more than the home is worth, and any remaining equity after the loan is repaid still passes to them.
A cash-out refinance still requires a monthly mortgage payment and is available at any age. A reverse mortgage refinance is limited to homeowners 62 and older, but eliminates the required monthly payment entirely — the trade-off is a lower amount of equity retained over time.
See If a Reverse Mortgage Refinance Fits Your Plan
We'll walk through your current loan, your home's equity, and your goals — honestly and without pressure — so you can decide with confidence.